Nvidia is set to report quarterly earnings as investors evaluate whether its AI-driven profits can keep pace with expectations. The chipmaker benefits from a $630 billion capital expenditure wave from Big Tech, supporting demand for high-performance AI chips used in data centers.
Analysts forecast Nvidia’s fourth-quarter revenue grew over 68% to $66.16 billion, with adjusted profit up more than 62%. For the first quarter, Nvidia is expected to report revenue of $72.46 billion, a 64.4% increase, with Wall Street watching for signs that earnings are not decelerating amid concerns about potential AI spending bubbles. Adjusted gross margin is projected to rise above 75%.
Competition is emerging from hyperscalers like Alphabet and Meta, who are developing cheaper in-house AI chips, while Advanced Micro Devices plans a new flagship AI server. Nvidia has sought to maintain its lead through a $20 billion Groq chip licensing deal and ongoing supply arrangements with TSMC.
CEO Jensen Huang also anticipates a return of AI chip sales to China, pending final export licenses. Despite supply chain constraints and rising memory costs, analysts expect Nvidia’s robust pricing power and locked-in memory allocations to cushion margins, keeping the company positioned as a dominant player in AI hardware.
